Fannie Mae, Freddie Mac unveil biggest reforms since 2008 housing crash
Shannon Longworth: Fannie Mae and Freddie Mac have unveiled some of the biggest changes since the housing market crash of 2008.
They’re meant to help those in underprivileged communities become homeowners.
And ensure homebuyers of color keep their homes.
The reforms include assistance with down payments…lower mortgage insurance premiums…and reserve funding for homeowner emergencies.
The federally-backed mortgage companies are also rolling out a new credit reporting system that factors rent payments into credit scores.
Experts say low credit scores are some of the biggest barriers keeping renters of color from purchasing a home.
We’ve already seen some of these policies rolled out.
From September to May, roughly two-thousand applicants benefited from Fannie Mae’s credit reporting system.
About 50 percent of those applicants were racial minorities.